Impact of the Trade Balance on the Ecuadorian Economic Growth, Period 1990-2019

Abstract

Historically, the trade balance has been positioned as a very important factor within economies, because from the perspective of its two components, exports and imports, in the sense of the production of goods and services for commercialization, they have served as part of the indicators to diagnose the development and prosperity of countries, measured from the difference between what is sold abroad with what is bought; having that, when such result is positive, it is argued that there is a surplus or surplus in the economy; while if it is negative, the economy shows a trade deficit. Therefore, as a result of this importance, the main objective of this research was to analyze the impact of the trade balance from exports and imports within the Ecuadorian economic growth, during the period 1990 to 2019, through a logarithmic regression model, supported by a methodological process that had a quantitative approach with a cross-sectional descriptive scope. The main results indicated that both variables generate a favorable impact on the economic growth of Ecuador, being, in addition, imports those that presented a greater effect than exports.